Mr Brown will back proposals to cut the burden of Third World debt by £30bn by the end of 2000 at meeting of G7 finance ministers in Bonn.

The plan would be funded by the sale of International Monetary Fund gold reserves.

Speaking ahead of the meeting, Mr Brown said the proposals could be a "very significant contribution" towards reducing the Third World's debt burden.

Ali: Hoping to knock out debt

Mr Brown's remarks follow Wednesday's support from celebrities - including U2 singer Bono and boxing legend Muhammad Ali - for the Jubilee 2000 campaign which aims to cancel the debts in developing countries by the millennium.

Mr Brown welcomed the fact that the issue of debt was being brought to the public's attention through high profile endorsements.

He said: "I think it has had a tremendous impact on public opinion around the world."

The chancellor has reason to believe that his proposals will be well received as US Vice President Al Gore's is already in favour of selling off five million ounces of the IMF's gold.

Meanwhile the UK is already backing German proposals to allow debtor nations easier access to international funds.